Due to the state’s numerous mandates, local governments in Illinois often don’t have the power to make the necessary reforms to keep costs under control. Yet, even in the most extreme cases of fiscal instability, bankruptcy is not an option.
House Bill 438, filed Jan. 13, 2017 by state Rep. Jeanne Ives, R-Wheaton, would change these laws to allow for municipal bankruptcy.
Local governments have their hands tied by the state on issues such as pension reform and municipal bankruptcy. When local budgets are pushed to the brink of collapse, local leaders aren’t able to file for bankruptcy to help reorganize debts and relieve stress on both taxpayers and budgets. This means taxpayers are stuck paying higher taxes and fees.
Under this legislation, local governments would have more control over how they operate. It would provide a safety net for municipalities and give taxpayers a last resort.
These changes would be effective upon passage.
Sign the petition today to tell your lawmaker to allow for municipal bankruptcy.